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Last week saw the newest yearly earnings release from Douglas AG (ETR:DOU), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of €4.5b were what the analysts expected, Douglas surprised by delivering a (statutory) profit of €0.90 per share, an impressive 37% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Douglas
Taking into account the latest results, the most recent consensus for Douglas from five analysts is for revenues of €4.73b in 2025. If met, it would imply a reasonable 6.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 200% to €2.34. Before this earnings report, the analysts had been forecasting revenues of €4.74b and earnings per share (EPS) of €2.34 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €30.67. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Douglas analyst has a price target of €35.00 per share, while the most pessimistic values it at €27.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Douglas is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Douglas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past three years. Compare this to the 22 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it looks like Douglas is forecast to grow at about the same rate as the wider industry.